Nutaaq Pipeline files for tariff increase

Nutaaq Pipeline LLC has filed for a substantial tariff increase for the Badami Oil Pipeline, which carries crude oil from the Badami field on the eastern side of the North Slope to the tie-in point with the Endicott Pipeline.

The current rate is $5.21 per barrel; the proposed rate is $8.95 per barrel.

Miller Resources Inc. finalized acquisition of an indirect controlling interest in Nutaaq late last year.

Nutaaq originally filed for 2015 rates premised on throughput from two new 1,000 barrel-per-day wells which were expected online in July. “Due to the sharp decline in global crude oil market conditions that have impacted the North Slope, the wells were not drilled and the throughput projections will not be on target,” Nutaaq said in its revised tariff filing.

Nutaaq said the revised tariff of $8.95 per barrel “was calculated by dividing the original cost estimate, net of 2014 carryover, by a new production forecast which is lower than the original” forecast which included the two new wells.

Actual production for January through March was used in the calculation, and an annual decline rate was applied.

Nutaaq said no additional wells are planned at Badami through the end of 2015.

The requested effective date for the tariff is June 1.

- Petroleum News